Tax Law

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The procedure for transfer of tax residence abroad under Greek law

The procedure and the supporting documents required for the transfer of the tax residence abroad are provided by Circular POL. 1201/2017 (Government Gazette Β΄4441/2017) of the Greek Independent Authority of Public Revenues (IAPR). On a general note, individuals must apply by the last working day of the first 10 days of March and submit the required documents by the last working day of the first 10 days of September of the year following their departure from the country. However, applications and supporting documentation submitted up to the 31st of December of the year following the tax year of departure from the...

10 Oct 2022

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Exit taxation rules

Τhe provisions of Article 66A of the Greek Income Tax Code have introduced exit taxation rules in Greece, transposing into the Greek legislation the relevant provisions of the EU Council Directive 2016/1164/EU (ATAD). Decision A. 1231/2020 of the Governor of the Independent Authority for Public Revenue provides details for the implementation of the relevant provisions. Purpose of exit taxation rules Exit taxation rules apply to transfers of assets, tax residence or business of a legal person outside Greece which result in the loss of the State’s right to tax and aim to ensure that the economic value of any capital gain...

05 Oct 2022

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New Tax on Pension Income of Non-Habitual Residents

By virtue of Law No 4714/2020 a new alternative tax regime for foreign pensioners is introduced, by the addition of a new article 5B in the Greek Income tax code (Law 4172/2013- ITC) with effect as of tax year 2020 onwards. It applies to individuals, earning pension income arising from abroad, as defined in Article 12 of the Income Tax Code, who transfer their tax residence in Greece. The following circumstances must be met: they have not been Greek tax resident for the previous five (5) of the six (6) years before the transfer of their tax residence in Greece,...

19 Sep 2022

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Extract from Circular POL 1026/2014

1. Any taxpayer who is tax resident in Greece and, within any tax year, incurs foreign-sourced income for which he has been taxed abroad, is required to submit the following documentation to the tax authorities together with the submission of his income tax return, in order to benefit from the foreign tax credit provided by article 9 par. 1 of L. 4172/2013 (the Greek Income Tax Code): − For countries with which there is a Double Tax Treaty in place, a certificate from the competent foreign tax authority evidencing the tax paid abroad. − For other countries, with which there is no...

16 Sep 2022

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Declaration of UK real estate income by Greek tax residents

The income from property located abroad is taxed in Greece according to the following tax scale: Income from property (€) Tax rate (%) 0 - 12.000 15% 12.001 - 35.000 35% 35.001 - ….. 45% It should be noted that expenses up to 5% of the gross income of foreign origin may be accepted for deduction for repair, maintenance, renovation or other fixed and operating costs of real estate that generates taxable income, regardless of its type and use, excluding income from leasing, free concession, owner-occupation of land and premises for the installation of signs. Αs regards the income from property located in UK, the Double Taxation Agreement between Greece...

16 Sep 2022

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Rules for Controlled Foreign Companies (CFCs)

The provisions of Article 66 of the Greek Income Tax Code (ITC) were amended as of 01.01.2019 by virtue of the provisions of Article 12 of Law 4607/2019 for the purpose of harmonization with Council Directive 2016/1164/EU (ATAD) and implementation of the BEPS results (final report - action 3), in order for Member States to limit the artificial diversion of income to companies and permanent establishments established in low-tax countries within and outside the European Union. In particular, the new provisions for "Controlled Foreign Companies", which relate to the inclusion in the taxable income of non-distributed income of a legal person...

07 Jul 2022

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Joint bank accounts – Inheritance and gift tax issues

Based on the recent law 4916/2022, article 25 par. 2 case (c) of the Greek Inheritance, Gifts and Parental Gifts Taxation Code – L. 2961/2001 (hereinafter referred to as “the Code”) was amended and extends the exemption from Greek inheritance taxation for deposits maintained in joint bank accounts including cash deposits and all kinds of securities that are held not only in bank accounts held in Greece but also abroad, with the exclusion of non-cooperative jurisdictions. It is noted that, in order for the exemption to apply, the contract with the foreign bank should include a clause providing that after the...

14 Jun 2022

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Greek tax issues related to the granting of a loan by a foreign company to its Greek tax-resident (individual) shareholder

Stamp duty issues On the basis of the territoriality principle, a loan concluded and executed abroad is exempt from Greek stamp duty, provided the following conditions are met: a) the loan agreement is concluded and signed by both parties abroad (not before a Greek Consulate Authority) e.g. before a notary public or attorney at law; b) the loan agreement must not create any executable obligations in Greece e.g. it should not be secured through mortgage or property located in Greece; c) any obligation to grant the loan and repay capital and interest must be executed abroad; this practically means that...

19 May 2022

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The principle of retroactive application of the lighter administrative sanction for breach of tax legislation under Greek law